Wearable Devices Ltd. (NASDAQ: WLDS) Set to Capitalize in AI-Powered Wearable Space

• The broader wearable technology market has been expanding rapidly as connectivity, health monitoring and intuitive user interfaces drive consumer and enterprise interest
• The company’s vision also anticipates broader adoption beyond gaming, healthcare or fitness applications

The global appetite for more intuitive, seamless interaction with technology is accelerating, and AI-powered, touchless sensing wearables are emerging as a cornerstone of this transformation. Wearable Devices (NASDAQ: WLDS) is at the forefront of this trend, leveraging neural-input interfaces and gesture recognition technology to provide hands-free control solutions that may redefine how users interact with consumer electronics and smart environments. Recent developments from the company highlight both growing market demand and Wearable Devices’ strategic role in unlocking new use cases for touchless wearable technology.

The global wearable technology market is experiencing rapid growth, driven by advances in connectivity, health monitoring, and intuitive user interfaces. According to Research and Markets, the market is expected to expand from approximately $82.33 billion in 2024 to more than $230 billion by 2033, reflecting a compound annual growth rate of about 12.1% as demand rises for AI-enabled wearables with advanced sensors and interaction capabilities.

Gesture recognition and touchless sensing are emerging as critical enablers of next-generation human-machine interaction. Grand View Research estimates the gesture recognition market will grow from roughly $25.44 billion in 2024 to over $70.18 billion by 2030, representing an 18% CAGR. The broader gesture recognition and touchless sensing market is forecast to expand from $28.4 billion in 2025 to nearly $125.9 billion by 2032, driven by adoption across consumer electronics, automotive, and enterprise applications.

This trend is further reinforced by the rapid expansion of extended reality glasses as a core wearable category. According to a December 2025 report by International Data Corporation titled “Global XR Shipments Rebound Behind Glasses-First Momentum, IDC Reports,” global XR glasses shipments are forecast to grow approximately 320% in 2025, reaching 10.6 million units. Growing mainstream acceptance of XR glasses, alongside continued enthusiasm from gamers for mixed reality and large-format experiences, is expected to drive cumulative shipments of approximately 105.7 million devices from 2025 through 2029, with annual shipments reaching about 29.7 million units by 2029 and a projected compound annual growth rate of 29.3%.

At the intersection of these trends stands Wearable Devices, a company dedicated to advancing touchless interaction through neural input interfaces that translate subtle finger movements and hand gestures into device control. The company’s technology centers on a novel approach that enables users to manipulate a wide variety of digital devices, from consumer electronics and smartwatches to augmented and virtual reality headsets, drones and robots, without physically touching a screen or controller. The company’s focus reflects a shift beyond conventional touch or voice input toward a more intuitive, gesture-driven experience, a direction underscored by the broader market’s evolution toward AI integration and natural user interfaces.

The company’s Mudra Link and Mudra Band products illustrate their early traction in both the consumer and enterprise segments. In the first half of 2025, Wearable Devices began recognizing revenue from the Mudra Link, a universal gesture control wearable wristband compatible with both Android and iOS devices, while also continuing to generate revenue from the Mudra Band for Apple Watch. These products expand the company’s reach while demonstrating the practical application of its core technology in real-world use cases.

AI-enabled wearable devices themselves are experiencing rapid growth. A report by the Brainy Insights projects that the global wearable AI market, which includes devices with built-in artificial intelligence capabilities, could expand from approximately $27.06 billion in 2023 to around $289.38 billion by 2033, propelled by consumer demand for advanced functionality such as personalized data insights, on-body intelligence and seamless integration with digital ecosystems. In this context, Wearable Devices focuses on AI-driven gesture recognition and neural input control positions the company to potentially capture a share of a segment that converges sensor innovation with intuitive interaction paradigms. Recent industry developments, including Apple’s acquisition of Q.ai, underscore the growing emphasis on advanced input and interaction technologies. As AI becomes more pervasive in wearables, differentiation is increasingly expected to hinge on intuitive, touchless methods of capturing user intent.

The company’s vision also anticipates broader adoption beyond gaming, healthcare or fitness applications. Gesture-based control and neural interfaces may find applicability in augmented reality glasses, virtual reality platforms, industrial IoT systems and connected environments where hands-free interaction is desirable for safety, convenience or accessibility. As demand for AI-powered, intuitive wearables continues to expand across these diverse sectors, Wearable Devices’ technology could become a foundational component of future user-centric design, particularly as developers and manufacturers seek ways to embed smarter, more responsive interfaces into next-generation devices.

The market for AI-powered, touchless sensing wearables is growing quickly and drawing stronger interest from both consumers and industry, backed by strong projected growth rates across the wearable, gesture recognition and touchless sensing segments. Wearable Devices’ work in neural input interfaces and gesture control technology reflects a broader movement toward more natural human-machine interaction, and its expanding product suite illustrates how companies in this space are responding to evolving demand. With a marketplace that values seamless, intuitive control and advanced AI integration, Wearable Devices is positioning itself to benefit from the wave of innovation sweeping through the wearable technology landscape.

For more information, visit www.WearableDevices.co.il.

NOTE TO INVESTORS: The latest news and updates relating to WLDS are available in the company’s newsroom at nnw.fm/WLDS

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